WEBVTT - Markets, Hiring, Supply Chain, And The Ski Industry 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.560 --> 0:00:15.600 with essential market moving news. Find the Bloomberg Markets Podcast 0:00:15.600 --> 0:00:18.479 on Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:22.239 at Bloomberg dot com slash podcast. I want to get 0:00:22.320 --> 0:00:25.040 right to our next guest, Danielle di Martino, Booth CEO 0:00:25.040 --> 0:00:29.000 and chief strategist at Quill Intelligence, former advisor at the 0:00:29.000 --> 0:00:32.200 Federal Reserve Bank of Dallas, as well as amongst lots 0:00:32.200 --> 0:00:34.680 of other things she does, and folks, I recommend you 0:00:34.680 --> 0:00:37.920 follow Danielle on socialists, got a really strong social media 0:00:38.000 --> 0:00:40.600 game and the people she follows I now follow and 0:00:40.720 --> 0:00:42.720 vice versas, so help him you get a little bit 0:00:42.720 --> 0:00:45.600 smarker on what's going on out there. Danielle, thanks so 0:00:45.680 --> 0:00:48.160 much for taking the time here on Christmas Eve Eve. 0:00:48.880 --> 0:00:52.480 What is your outlook for this market going into two 0:00:52.479 --> 0:00:55.560 We've got Amicron, we've got a rising interest rate environment, 0:00:55.600 --> 0:00:57.920 a lot of cross currents out there. Can you kind 0:00:57.920 --> 0:00:59.760 of just give us a sense of what we should 0:00:59.760 --> 0:01:02.760 be thinking king about for next year? Well, I think 0:01:02.840 --> 0:01:06.440 markets uh rightly have moved on from Amy crom at 0:01:06.520 --> 0:01:08.800 least for the moment, it does not seem to have 0:01:08.840 --> 0:01:13.160 disrupted UH, whether you're talking about travel or services consumption. 0:01:13.240 --> 0:01:17.000 We we saw come in very hot this morning. Um, 0:01:17.040 --> 0:01:19.840 but there is something be said also for all of 0:01:19.840 --> 0:01:24.160 the goods purchases that have been pulled forward in and 0:01:24.200 --> 0:01:26.640 the fact that we will not be having any more 0:01:27.000 --> 0:01:31.399 fiscal impulse going into the first quarters, so that concerns me. 0:01:31.480 --> 0:01:35.720 We did see the weakest goods consumption that we've seen 0:01:35.920 --> 0:01:39.240 in in well over a year. So these things raise 0:01:39.319 --> 0:01:42.640 red flags when we are a consumption driven economy and 0:01:42.640 --> 0:01:46.200 you're seeing goods consumption contract and that's at a normal, 0:01:46.360 --> 0:01:50.320 non a level that's not even adjusted for inflation. Danielle Uh, 0:01:50.440 --> 0:01:52.680 I want to really stick with that topic of consumption 0:01:52.760 --> 0:01:55.480 here and and follow up on a story that's about 0:01:55.560 --> 0:01:57.320 a year and a half hold. As I'm looking at 0:01:57.360 --> 0:02:00.040 my byline, I worked with a collaborated with story with 0:02:00.120 --> 0:02:04.560 Liz McCormick, who quoted you talking about essentially the savings rate, 0:02:04.600 --> 0:02:07.200 which was likened at one point to what you saw 0:02:07.240 --> 0:02:09.240 in the Great Depression. This idea that in this kind 0:02:09.240 --> 0:02:11.760 of pandemic era, a lot of people were holding onto 0:02:11.760 --> 0:02:14.120 those savings at a rate that you didn't even see 0:02:14.840 --> 0:02:17.680 when there was that kind of depression era austerity. I 0:02:17.720 --> 0:02:20.400 want to ask you about how the savings rate is 0:02:20.480 --> 0:02:24.160 dropping and what the impact of that on consumption is 0:02:24.200 --> 0:02:28.000 and then by extension the broader economy that's you know, 0:02:28.000 --> 0:02:30.280 that's a fantastic question. We're back down to two thousand 0:02:30.400 --> 0:02:33.480 seventeen levels on on the savings rate, as we saw 0:02:33.520 --> 0:02:36.919 in this morning's data, and that is problematic, especially when 0:02:36.960 --> 0:02:38.720 you layer on top of that the fact that we 0:02:38.800 --> 0:02:41.720 know due to New York Federal Reserve data, that the 0:02:41.760 --> 0:02:45.080 bulk of the savings that do survive, that have survived, 0:02:45.680 --> 0:02:48.560 are in the hands of those between sixty five and 0:02:48.560 --> 0:02:51.280 and and older, as as well as those who are 0:02:51.280 --> 0:02:55.160 the wealthiest who have the least propensity to use their savings. 0:02:55.440 --> 0:02:58.920 So again, this this fiscal cliff idea is critical as 0:02:58.960 --> 0:03:01.440 we head into the New York. January fift is going 0:03:01.480 --> 0:03:03.480 to mark the first month that Americans don't receive five 0:03:03.919 --> 0:03:06.880 fifty dollars on average in child tax credit in cash, 0:03:07.320 --> 0:03:08.880 and some of them are going to have to pay 0:03:08.919 --> 0:03:11.360 some of that back when the I R s opens 0:03:11.480 --> 0:03:14.480 up the it's it's window to submit tax returns on 0:03:14.600 --> 0:03:17.160 January thirty one. So a lot of a lot of 0:03:17.400 --> 0:03:20.840 interesting um events occurring in that first month of this year. 0:03:21.760 --> 0:03:25.440 So given that backdrop, Danielle, we've got some pretty clear 0:03:26.000 --> 0:03:28.359 guidance from this Federal Reserve as to how they're thinking 0:03:28.360 --> 0:03:32.680 about their tapering and and the rate structure. Do you 0:03:32.720 --> 0:03:36.680 think the Federal Reserve is getting it right or is 0:03:36.720 --> 0:03:39.240 that narrative that maybe they're still behind the market is 0:03:39.280 --> 0:03:43.040 that's still there. But you can't start out from behind 0:03:43.080 --> 0:03:46.320 and not still be behind. So I mean, unless they 0:03:46.480 --> 0:03:48.480 unless they were to come out at the end of June, 0:03:48.520 --> 0:03:50.400 excuse me, the end of January, their next meeting, which 0:03:50.400 --> 0:03:52.520 is the last week of January, and say you know what, 0:03:52.680 --> 0:03:56.119 the tapers over, We're finished with it um. But they 0:03:56.160 --> 0:03:59.080 could certainly and we'll listen to sad talk. There was 0:03:59.120 --> 0:04:01.920 a fantastic are go on the terminal about Christopher Waller, 0:04:02.080 --> 0:04:05.200 and I recommend everybody read that article because he is 0:04:05.240 --> 0:04:09.280 a different sounding Federals are governor, and of course governors 0:04:09.280 --> 0:04:12.440 have permanent votes. We haven't seen a governor dissent since 0:04:12.520 --> 0:04:15.080 two thousands five, and he seems dead set on that 0:04:15.120 --> 0:04:18.760 March seventeenth launch date for the first rate hike, So 0:04:19.000 --> 0:04:21.880 you know, will they get there, will the will the 0:04:21.960 --> 0:04:24.359 yield curve win? We'll find out. I mean there are 0:04:24.400 --> 0:04:27.040 some people who are saying if yield curve is compressing 0:04:27.080 --> 0:04:30.080 and behaving almost like mid de late cycle, so we 0:04:30.120 --> 0:04:33.280 will see if the yield curve races to the finish line. 0:04:33.320 --> 0:04:36.760 And because the Fed cannot increase interest rates if the 0:04:36.800 --> 0:04:39.640 yield curve is inverted, it's just there's nothing in the 0:04:39.680 --> 0:04:42.640 rule book that would allow for that. So three rate 0:04:42.720 --> 0:04:45.480 hikes in two that is the message we have gotten 0:04:45.560 --> 0:04:48.000 from the Fed. Something he'd mind is since then, we've 0:04:48.000 --> 0:04:51.040 had several emerging market countries continue to hike and hike 0:04:51.040 --> 0:04:52.880 and hike. The Czech Republic I believe is the most 0:04:52.880 --> 0:04:55.520 recent um And we don't need another reminder on what's 0:04:55.560 --> 0:04:58.799 going on with Turkey. Of course, going in the opposite direction, Danielle, 0:04:58.839 --> 0:05:01.200 I really want to ask you what the bond market 0:05:01.240 --> 0:05:03.320 is really thinking here, because it kind of seems like 0:05:03.320 --> 0:05:06.560 when you're looking at pricing, they're pricing in not just 0:05:06.800 --> 0:05:09.279 steeper hikes, but kind of this kind of knee jerk, 0:05:09.400 --> 0:05:12.480 stop start reaction. This idea that the FED might actually 0:05:13.320 --> 0:05:16.240 need to do something and then wait and see and 0:05:16.240 --> 0:05:18.360 then do it again. What is your thought process on 0:05:18.400 --> 0:05:23.040 the bond markets? Take So, I mean the check Republic 0:05:23.080 --> 0:05:25.320 over night raised interest rates by a hundred basis points. 0:05:25.320 --> 0:05:27.840 We were expecting seventy five. And we're seeing some very 0:05:27.880 --> 0:05:31.200 aggressive behavior again to your point outside of Turkey where 0:05:31.200 --> 0:05:34.520 everything's Craig craig, but we're seeing a very aggressive emerging market. 0:05:34.760 --> 0:05:37.520 They have to defend their currencies right now. Um, So 0:05:37.560 --> 0:05:40.440 the question is one of how does the FED react? 0:05:40.600 --> 0:05:42.480 And should the FED be reacting or should the Fed 0:05:42.520 --> 0:05:47.240 be disciplined in its approach maintain that that pace, maintain 0:05:47.360 --> 0:05:50.760 the stability that markets are expecting. Again, I go back 0:05:50.800 --> 0:05:52.880 to the yield curve and the fact that other areas 0:05:52.880 --> 0:05:55.000 of the economy are pulling that long end down. We 0:05:55.040 --> 0:05:57.200 can't seem to get past that that one point five 0:05:57.320 --> 0:06:00.280 zero ceiling on the tenure or it feel like an 0:06:00.279 --> 0:06:03.880 inner and ceiling. So I go back to how aggressive 0:06:03.880 --> 0:06:06.880 the FED can be given what the bond market is 0:06:06.920 --> 0:06:10.000 dictating right now. Hey, Danielle, thank you so much for 0:06:10.080 --> 0:06:13.360 taking the time today. We always appreciate getting your perspective. 0:06:13.680 --> 0:06:15.479 Viewer views, particularly here at this time of years, we 0:06:15.520 --> 0:06:18.520 think about next year. Danielle di Martino Booth. She's a 0:06:18.600 --> 0:06:22.800 CEO and chief strategist at Quill Intelligence, also a former 0:06:22.800 --> 0:06:30.159 advisor at the Federal Reserve Bank of Dallas. One of 0:06:30.200 --> 0:06:33.719 the I guess economic oddities, at least for me, from 0:06:33.720 --> 0:06:37.320 this pandemic has been what some are calling the Great resignation, 0:06:37.360 --> 0:06:40.240 people just leaving the workforce. I don't really have a 0:06:40.279 --> 0:06:43.040 great answer why, but maybe our next guest will and 0:06:43.080 --> 0:06:44.760 give us a sense of how things are working out 0:06:44.800 --> 0:06:47.640 in the labor market. Roll Vr, CEO of pay Corps. 0:06:47.640 --> 0:06:50.440 Pay Corp is a public company went public this year, 0:06:50.520 --> 0:06:53.080 trades on the nastac P y c R. It's kind 0:06:53.080 --> 0:06:57.080 of market cap of five point two billion dollars. RAU, Well, 0:06:57.120 --> 0:06:59.440 thank you so much for joining us here. UM. Your 0:06:59.480 --> 0:07:03.080 company creates human capital management software to help recruit an 0:07:03.120 --> 0:07:07.040 onboard employees as well as other people management tools. Do 0:07:07.080 --> 0:07:09.640 you have a sense, given your history with your customers, 0:07:09.720 --> 0:07:14.400 your clients, where these people went the Great Resignation? Yeah? 0:07:14.440 --> 0:07:17.520 So I think that there's there's two dynamics, UM that 0:07:17.560 --> 0:07:20.760 are happening. First and foremost, you know, since the pandemic, 0:07:21.480 --> 0:07:24.600 UM you know, we're still not back to uh, the 0:07:24.680 --> 0:07:26.560 overall labor market hasn't go back to where it was 0:07:26.880 --> 0:07:30.160 pre COVID uh. And so there's two things that are 0:07:30.160 --> 0:07:33.520 going on. Um, there's less supply in the market, which 0:07:33.600 --> 0:07:38.840 makes you know, each individual job UM in more demand. 0:07:39.080 --> 0:07:42.760 And so people are really re evaluating. People are talking 0:07:42.760 --> 0:07:46.000 about the Great resignation, but from our perspective, it's a 0:07:46.040 --> 0:07:50.280 reevaluation where people are thinking about their current job and hey, 0:07:50.320 --> 0:07:53.280 do I really want that job and is it offering me, 0:07:53.640 --> 0:07:56.760 you know, the right leadership, the right benefits, the right 0:07:56.800 --> 0:08:00.440 pay package. And so we're seeing shortages and some of 0:08:00.480 --> 0:08:03.880 the industries that we all you know, work with every day, 0:08:03.920 --> 0:08:07.720 whether it be retail or food and beverage or hospitality. UM, 0:08:07.760 --> 0:08:11.560 we're seeing significant worker shortages and all of those industries 0:08:11.640 --> 0:08:14.640 because you know, people are reevaluating their future and they're 0:08:14.640 --> 0:08:18.280 deciding to do other things. Yeah, well this is going 0:08:18.320 --> 0:08:21.040 to be a crucial piece of the equation going into two. 0:08:21.040 --> 0:08:23.120 We're looking at a queer rate that's just shy three 0:08:23.600 --> 0:08:26.920 according to latest Jolts data, the highest in history that 0:08:26.960 --> 0:08:29.240 the data goes back to. I really want to talk 0:08:29.280 --> 0:08:34.000 about here why we're actually not necessarily seeing this hit 0:08:34.679 --> 0:08:37.240 some of those retailers to hospitality figures because they are 0:08:37.280 --> 0:08:39.800 still trying to hire, they are still seeing their shortages. 0:08:40.320 --> 0:08:43.240 But somehow those businesses are still operating. Can you connect 0:08:43.240 --> 0:08:48.160 those dots for us? Yeah, I think you know clearly, Um, 0:08:48.200 --> 0:08:51.120 the retailers and hostilities are still operating. I think they're 0:08:51.160 --> 0:08:54.320 operating less effectively than before. I think we're all waiting 0:08:54.360 --> 0:08:58.320 a little longer in lines, you know at retailers, or um, 0:08:58.320 --> 0:09:01.680 waiting a little longer to have dinner, um, those type 0:09:01.720 --> 0:09:06.040 of things. But UM, what's happened is it's forced retailers 0:09:06.040 --> 0:09:09.600 and restaurants UM to try new things to attract employees, 0:09:09.800 --> 0:09:13.920 whether that's flexible work schedules, whether that's you know, on 0:09:14.040 --> 0:09:17.920 demand pay, the ability to get UM their pay you know, 0:09:18.360 --> 0:09:20.840 instead of on a weekly basis or by loot basis. 0:09:20.840 --> 0:09:23.439 Can I get my pay on demand to help pay 0:09:23.480 --> 0:09:27.520 with my bills and and offering you know, better flexibility 0:09:27.520 --> 0:09:29.959 and better benefits across the board. So I think you're 0:09:29.960 --> 0:09:36.480 seeing the cost to employees increasing for retail and hospitality. Uh. 0:09:36.520 --> 0:09:39.680 And so that's become you know, the next issue for 0:09:40.080 --> 0:09:43.000 you know, those industries is the overall costs, which were 0:09:43.000 --> 0:09:46.680 then seeing pushed back onto the consumer. Paul, I don't 0:09:46.679 --> 0:09:49.480 know if you've ordered food like take out to your 0:09:49.480 --> 0:09:52.520 house lately, but I certainly have because I'm a horrible cook. 0:09:52.840 --> 0:09:56.120 But one of the main issues for me has been 0:09:56.200 --> 0:09:58.800 having these very delayed deliveries. And this is such a 0:09:58.840 --> 0:10:00.959 first world problem, right, I'm gonna complain about it on 0:10:01.000 --> 0:10:03.520 the air anyway, But a lot of it tends to 0:10:03.520 --> 0:10:06.959 be because of simply a shortage of food delivery people 0:10:07.240 --> 0:10:10.320 and drivers, for example. So let me ask you here 0:10:10.400 --> 0:10:13.360 about just the effect here on the gig economy, on 0:10:13.400 --> 0:10:17.679 the folks that don't necessarily have a salary job. Yeah. So, 0:10:17.760 --> 0:10:21.320 I mean I think you're seeing again, um, you see 0:10:21.360 --> 0:10:24.360 shortages on on food. I think we've also all seen 0:10:24.880 --> 0:10:27.880 a change in behavior with Uber and Lift than you know, 0:10:27.920 --> 0:10:31.400 pre pandemic in the ability to get an on time ride. Uh. 0:10:31.400 --> 0:10:35.319 And so I think you know, people are definitely moving 0:10:35.400 --> 0:10:38.120 into gig jobs, and we're still seeing that acceleration. I 0:10:38.160 --> 0:10:41.920 don't think it's happening at the rate that's required to 0:10:42.080 --> 0:10:46.360 service the demand shift for either delivery or Uber or 0:10:46.440 --> 0:10:49.440 lift or the type of services that gig supports. And 0:10:49.480 --> 0:10:53.360 so We're seeing the same type of shortages there overall. Um, 0:10:53.360 --> 0:10:56.880 whether it be you know, the traditional employment economy or 0:10:56.920 --> 0:11:00.880 the gig economy, we're facing the same labor issues across 0:11:00.920 --> 0:11:03.840 the board. Roll uh cretty and I we are in 0:11:04.080 --> 0:11:09.000 the Bloomberg headquarters office today, UM, but we're lonely. Are 0:11:09.160 --> 0:11:12.920 people gonna come back to the office? So uh, like 0:11:13.320 --> 0:11:17.000 you know, our perspective is that, UM, we're gonna continue 0:11:17.040 --> 0:11:20.640 to see a mixed environment. UM, you know for the 0:11:20.720 --> 0:11:25.520 foreseeable future. UM, we're probably you know a little overcorrected 0:11:25.640 --> 0:11:28.120 right now. We're the majority of people are working from home. 0:11:28.160 --> 0:11:30.640 I think you know, over the next you know, six 0:11:30.720 --> 0:11:33.120 or twelve months, we'll see more of a mix, some 0:11:33.280 --> 0:11:36.520 return to work, maybe not five days a week. UM. 0:11:36.559 --> 0:11:38.880 You know, at pay Corps as an example, you know, 0:11:38.920 --> 0:11:42.320 we have a virtual first philosophy. UM, and we enable 0:11:42.679 --> 0:11:44.640 you know, our employees to work from home or flex 0:11:44.679 --> 0:11:47.040 into an office in a hotel ing type concept. And 0:11:47.080 --> 0:11:49.520 I think we're gonna see more of that, you know, 0:11:49.600 --> 0:11:52.680 for the foreseeable future. UM. I think you know, when 0:11:52.720 --> 0:11:56.480 we you know, survey our client base, survey our own employees, 0:11:56.800 --> 0:12:01.320 people are saying we want flexibility. UM, we also want 0:12:01.880 --> 0:12:04.640 the connectivity of being in the office and being with 0:12:04.679 --> 0:12:07.840 our coworkers and doing things for the community and those 0:12:07.880 --> 0:12:09.880 types of things. Yeah, it's interesting to see how this 0:12:09.960 --> 0:12:13.319 is going to develop. A vr CEO of pay Corps. 0:12:13.320 --> 0:12:21.959 It's a NASDAC listed stock p y c R. I 0:12:22.000 --> 0:12:23.760 don't know about your pretty but I still go to 0:12:23.800 --> 0:12:25.559 the grocery store. Do you go to grocer store, you 0:12:25.559 --> 0:12:27.840 get your groceries delivered? I do go to the grocery store, 0:12:27.840 --> 0:12:29.280 and let me tell you, it's the worst part of 0:12:29.320 --> 0:12:31.600 my day. See, that's why a lot of people, more 0:12:31.600 --> 0:12:33.800 and more people a getting their groceries delivered in Our 0:12:33.840 --> 0:12:37.360 next guest certainly is in the middle of that. Sha Wang, 0:12:37.520 --> 0:12:40.680 CEO and co founder of Boxed uh symbol b o 0:12:41.040 --> 0:12:43.280 x D on the New York Stock Exchange, joins us 0:12:43.280 --> 0:12:45.120 here say thanks so much for taking the time here. 0:12:45.400 --> 0:12:48.160 First of all, just give us a thirty view of 0:12:48.400 --> 0:12:51.080 your company, uh. And also I think you guys recent 0:12:51.120 --> 0:12:55.600 came public via a spack. Give us the details there. Yeah, 0:12:55.600 --> 0:12:57.440 it's been a it's been a pretty wild year, Paul, 0:12:57.520 --> 0:13:00.160 so Um, we're Boxed. As you mentioned, b o x 0:13:00.240 --> 0:13:01.959 e D is the company name, but bio x d 0:13:02.120 --> 0:13:04.000 s are symbol in the New York sockic Change. So 0:13:04.280 --> 0:13:06.320 we started eight and a half years ago shipping bulk 0:13:06.360 --> 0:13:09.960 consumables to consumers and businesses. So we still do that today, 0:13:10.000 --> 0:13:13.400 but we also sell the technology, including the hardware and 0:13:13.400 --> 0:13:16.040 all the software that powers that e commerce business via 0:13:16.080 --> 0:13:18.880 a software and services business as well. So all that 0:13:19.120 --> 0:13:22.400 is what we do today here are boxed. Well, we 0:13:22.400 --> 0:13:25.440 gotta start talking about your the issues that are of 0:13:25.480 --> 0:13:28.640 course kind of hurting a lot of companies across the board. 0:13:28.880 --> 0:13:31.280 I want to know the ones that are affecting yours, 0:13:31.280 --> 0:13:33.480 primarily when we're talking about inventory, because I'm just look 0:13:33.480 --> 0:13:36.120 at your website here. Looks like you guys deliver things 0:13:36.240 --> 0:13:39.079 in bulk, which must mean there are inventory and storage 0:13:39.120 --> 0:13:42.800 costs involved. Talk to us about that. Yeah, absolutely, So 0:13:42.960 --> 0:13:46.360 we right now are mostly first party merchandiser, so meaning 0:13:46.360 --> 0:13:47.840 we take him into our of the item and we 0:13:47.880 --> 0:13:50.720 sell that item to consumers all around the country. Um 0:13:50.760 --> 0:13:54.680 to Paul's question before, the challenges of and the opportunities 0:13:55.800 --> 0:13:57.760 are the real reason why we went vias back and 0:13:57.840 --> 0:14:01.560 so Um, when you look at our business, traditionally of 0:14:01.559 --> 0:14:04.079 our business pre COVID was B two B and so creaty. 0:14:04.120 --> 0:14:06.840 You can imagine that, you know, as folks stopped going 0:14:06.880 --> 0:14:10.040 into the office, as you know, schools shut down. That 0:14:10.120 --> 0:14:11.839 was very hurtful for our B two B business last 0:14:11.920 --> 0:14:14.200 year to say the least. Um But as a as 0:14:14.200 --> 0:14:16.640 the comy economy opened up a bit, as we're beginning 0:14:16.679 --> 0:14:19.960 to live with COVID, we're seeing a rebound there and 0:14:20.040 --> 0:14:22.720 showing the world what that looks like two three or 0:14:22.720 --> 0:14:24.880 four or five years into the future was something we 0:14:24.880 --> 0:14:27.840 could do by going public vias back. So give us 0:14:27.840 --> 0:14:30.000 a sense here. I mean, we're hearing from a lot 0:14:30.040 --> 0:14:33.440 of different businesses throughout the economy the challenges of the 0:14:33.440 --> 0:14:38.560 supply chain bottlenecks out there. How is that impacting your business? Yeah, 0:14:38.600 --> 0:14:41.000 that's I mean, that is the I mean, it is 0:14:41.040 --> 0:14:44.400 the biggest issue afflicting almost the entire planet uh today 0:14:44.400 --> 0:14:47.520 when it comes to business. Um So, the good thing 0:14:47.680 --> 0:14:50.440 for Boxed is that because we sell consumables, and because 0:14:50.440 --> 0:14:53.680 of overt decisions we made years ago with our private brand, 0:14:54.200 --> 0:14:56.520 almost everything you would buy Unboxed when it comes to 0:14:56.520 --> 0:14:59.520 the consumable products are actually made in the US. Um So, 0:14:59.520 --> 0:15:02.200 when you see those boats lined up off the kind 0:15:02.240 --> 0:15:04.560 of ports all around the world. That doesn't affect us 0:15:04.560 --> 0:15:07.040 as much. But I have to say the shortage of 0:15:07.040 --> 0:15:09.880 of labor supply um that certainly affects us be a 0:15:09.960 --> 0:15:13.040 last mile and so as our last mile partners start 0:15:13.120 --> 0:15:16.240 to um you know, have bilats or begin to raise 0:15:16.320 --> 0:15:19.400 rates because of that shortage and labor um you know, 0:15:19.480 --> 0:15:22.240 that will of course affect us as well as affect 0:15:22.280 --> 0:15:25.320 everyone across the entire industry. Let's talk about who your 0:15:25.320 --> 0:15:29.240 consumer is here, I and I'm Paul, I guess lives 0:15:29.240 --> 0:15:33.720 in the suburbs, like I live in the city here 0:15:33.920 --> 0:15:35.840 in a very small studio, I might add, with a 0:15:35.840 --> 0:15:38.360 puppy who is adorable. But um, what I want to 0:15:38.360 --> 0:15:41.680 really want to ask you here is what is the 0:15:41.720 --> 0:15:43.920 difference in your consumer base? Because if you're talking about 0:15:44.000 --> 0:15:46.400 essentially bulk deliveries, I don't know if I have room 0:15:46.440 --> 0:15:49.040 in my studio to put that. So I'm curious because 0:15:49.040 --> 0:15:51.960 I'm looking at some notes here, and your headquarters essentially 0:15:51.960 --> 0:15:54.120 in New York City, your fulfilment centers are across the 0:15:54.160 --> 0:15:56.480 country in Dallas, by the way, which I might add, 0:15:56.480 --> 0:15:58.640 I am from. So talk to us about the kind 0:15:58.640 --> 0:16:03.000 of separation those diversions between say those city dwellers versus 0:16:03.040 --> 0:16:06.359 those the country folks that are not in New York City. 0:16:06.840 --> 0:16:08.560 That's such a great question. And the reason why I 0:16:08.600 --> 0:16:10.520 was laughing is because you know, I would imagine if 0:16:10.520 --> 0:16:12.880 we went back in time. Uh. And you know, in 0:16:12.920 --> 0:16:14.840 the big toilet paper crunch of twenty twenty, and I 0:16:14.880 --> 0:16:18.880 showed up with boilet papers the apartment. Yeah, I was creating. 0:16:19.000 --> 0:16:20.600 I'm sure even though you're in the studio, I'm sure 0:16:20.640 --> 0:16:22.280 you'd be like, all right, we're gonna touch us this 0:16:22.360 --> 0:16:26.280 into my apartment somehow. Um. But um, you know, joking 0:16:26.280 --> 0:16:28.360 aside kind of what we see and what shocked a 0:16:28.360 --> 0:16:29.920 lot of folks when we did our road show was 0:16:29.960 --> 0:16:33.240 that UM, at our last read of our demographic, almost 0:16:33.240 --> 0:16:38.240 seventy of that audience UM surveyed is either in kind 0:16:38.240 --> 0:16:41.040 of deep suburbs or in rural America. Uh. And so 0:16:41.080 --> 0:16:44.160 these are folks that don't live within a thirty sixty 0:16:44.240 --> 0:16:47.200 ninety minute drive of a local warehouse club, so previous 0:16:47.240 --> 0:16:49.840 to us, they were largely shut out of of stocking 0:16:49.920 --> 0:16:52.800 up and saving by doing so. Interesting, So, so, who 0:16:52.840 --> 0:16:56.080 do you really compete against uh day to day? And 0:16:56.080 --> 0:17:00.120 how's that maybe changed during the pandemic Yeah, So what 0:17:00.200 --> 0:17:02.200 you really kind of see from some of the data 0:17:02.240 --> 0:17:04.879 that we've we've been shown is that, um, you know, 0:17:04.920 --> 0:17:07.600 we get pitted against Costco, b J's, and Sam's Club 0:17:07.840 --> 0:17:10.000 a lot. But you know, when you when you hear 0:17:10.080 --> 0:17:11.679 kind of what I just said before about like almost 0:17:11.680 --> 0:17:14.760 sev don't live close to one of those clubs, you 0:17:14.800 --> 0:17:16.480 actually start to see kind of some of the data 0:17:16.520 --> 0:17:19.400 we've had access to, you start to see some overlap 0:17:19.400 --> 0:17:24.200 in the ven diagram with um, traditional supermarkets, dollar stores, 0:17:24.720 --> 0:17:27.520 um uh, and traditional chains like that that you would 0:17:27.520 --> 0:17:29.600 otherwise have only have access to if you live in 0:17:29.640 --> 0:17:31.919 a small town. So one of the big you just 0:17:31.960 --> 0:17:35.200 mentioned Costco. One of the big divergences between or differences 0:17:35.240 --> 0:17:38.280 I should say between say Costco or your average Walmart 0:17:38.320 --> 0:17:41.400 for for example, is product selection. Costco doesn't have as 0:17:41.440 --> 0:17:44.159 big of a product selection as say your Walmart does, 0:17:44.200 --> 0:17:47.520 which has multiple multiple options. Where on that scale do 0:17:47.680 --> 0:17:50.680 you fall in terms of the things that you offer 0:17:50.720 --> 0:17:55.080 to consumers. So that is something that we've really really 0:17:55.119 --> 0:17:58.080 tried to hone over time. So we started off, you know, 0:17:58.119 --> 0:17:59.719 almost eight and a half years ago with just two 0:17:59.800 --> 0:18:03.080 high their products for sale. We're up to closer to 0:18:03.160 --> 0:18:06.560 three thousand these days, Um, your typical you know, warehouse 0:18:06.560 --> 0:18:09.280 club will have you know, between three to five thousand items. 0:18:09.480 --> 0:18:12.560 Your typical supermarket will have closer to hundred thousand, and 0:18:12.800 --> 0:18:16.120 you know, your typical superstar will have way above that. Um. 0:18:16.240 --> 0:18:17.639 But you know where we want to take it, and 0:18:17.720 --> 0:18:20.840 kind of what we set out in our original investor 0:18:20.880 --> 0:18:23.280 presentation in analyst Day was that we're going to take 0:18:23.280 --> 0:18:25.080 the money that we raised close to two hundred million 0:18:25.119 --> 0:18:27.640 dollars and actually grow a sortment because I think there's 0:18:28.080 --> 0:18:32.080 definitely some pockets um of inventory where our customers are saying, hey, 0:18:32.520 --> 0:18:34.879 you know I already buy hundred dollars worth of stuff 0:18:34.880 --> 0:18:36.840 for you from you on an average shop if you 0:18:36.920 --> 0:18:39.000 only had X, Y and Z, I would have thrown 0:18:39.040 --> 0:18:40.640 it in the basket, but you didn't carry it. So 0:18:40.880 --> 0:18:43.359 that's a real opportunity for us in the coming years. 0:18:43.400 --> 0:18:47.120 So talk to us about this use of capital again, UM, 0:18:47.200 --> 0:18:51.440 broadening your your selection of goods. What other drivers are 0:18:51.480 --> 0:18:55.280 you looking for for your business? Yeah, so you know 0:18:55.560 --> 0:18:58.399 what we It's it's funny because you know, yesterday we 0:18:58.480 --> 0:19:01.000 rang the bell at the Stock Exchange, immediately came back 0:19:01.000 --> 0:19:02.679 to the office and got right back to work with 0:19:02.760 --> 0:19:06.600 the management off site or on site off site UM, 0:19:06.640 --> 0:19:09.680 and what we talked about was basically making that original 0:19:09.760 --> 0:19:12.400 investor presentation come true. We want to be a management 0:19:12.400 --> 0:19:14.280 team that says he was what we presented to you 0:19:14.480 --> 0:19:16.760 and this is exactly what we delivered. And so to 0:19:16.880 --> 0:19:19.480 the question Paul, it was three main levers in BBC 0:19:19.520 --> 0:19:22.520 B two C. One was growing up brand because you know, 0:19:22.920 --> 0:19:26.159 it's decently well known in New York City, but you 0:19:26.200 --> 0:19:28.560 know when you go across the country, you know, unaided 0:19:28.560 --> 0:19:32.680 awareness is still rather low for Boxed. So marketing investment 0:19:33.080 --> 0:19:35.960 too is increase of assortment, so whether it's healthy in 0:19:36.080 --> 0:19:39.440 organics or baby or other products that were not very strong, 0:19:39.520 --> 0:19:43.080 and that's definitely another lever. And then the third is 0:19:43.240 --> 0:19:45.560 UM some of the subscription and loyalty programs that we 0:19:45.600 --> 0:19:48.480 have to increase retention. So those are three levers that 0:19:48.480 --> 0:19:50.600 we're going to pull this year. Cha, thanks so much 0:19:50.600 --> 0:19:58.840 for joining us. Really appreciate learning about the story there. Well, 0:19:58.880 --> 0:20:01.639 despite this me Kron variant, what I'm going to be 0:20:01.680 --> 0:20:04.359 busy doing this weekend is booking some ski trips for 0:20:04.440 --> 0:20:06.760 this winter and spring. A couple of my faves I'm 0:20:06.800 --> 0:20:09.840 looking at our Squaw Valley in Lake Taho. It's now 0:20:09.880 --> 0:20:12.800 been renamed Palisades Tahoe. We'll leave that for another time 0:20:12.840 --> 0:20:16.400 and discussion. Also looking at another favorite steamboat springs out 0:20:16.440 --> 0:20:18.679 in Colorado. And guess what, We're going to talk to 0:20:18.720 --> 0:20:21.080 the guy who actually runs all that stuff, Rusty Gregory, 0:20:21.240 --> 0:20:24.680 chief executive officer for i'll Terra Mountain Company. Rusty, I'm 0:20:24.680 --> 0:20:27.880 booking my trips. I'm looking. I'm not letting omikron kind 0:20:27.880 --> 0:20:32.360 of slow me down. What's your view of this ski season? Well, 0:20:32.400 --> 0:20:36.280 you know, we're very optimistic, much better shape than we 0:20:36.280 --> 0:20:39.480 were last year when there was a lot of unknowns 0:20:39.520 --> 0:20:43.480 about the pandemic. This year less so and uh and weather. 0:20:43.480 --> 0:20:45.639 It is hitting the west Wood a vengeance. I'm actually 0:20:45.680 --> 0:20:48.679